Outcomes of External Liberalization and Policy Implications

Lance Taylor

in External Liberalization, Economic Performance and Social Policy

Published in print May 2001 | ISBN: 9780195145465
Published online September 2007 | e-ISBN: 9780199783960 | DOI:
 Outcomes of External Liberalization and Policy Implications

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This chapter reports on a fundamental economic policy shift in transition and developing economies after the mid‐1980s – the replacement of traditional regimes of widespread state controls and import‐substituting industrialization by packages aimed at liberalizing the balance of payments, on both current and capital accounts. The new policy mix showed up throughout Latin America, Eastern Europe, Asia, and even in parts of Africa. Together with large but highly volatile foreign capital movements (often but not always in connection with privatization of state enterprises), this wave of external deregulation has been the central feature of globalization for the less‐industrialized world. This thrust toward liberalization is analyzed in the book on the basis of recent historical evidence from nine economies – Argentina, Colombia, Cuba, India, South Korea, Mexico, Russia, Turkey, and Zimbabwe. This chapter is an executive summary of the principal results, which draws heavily on material presented in Chapter 2, and ultimately on the country papers in the other nine chapters.

Keywords: balance of payments; deregulation; developing countries; economic policy; globalization; government control; liberalization; privatization; state control; transition economies; Turkey

Chapter.  4198 words. 

Subjects: International Economics

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